Trade-Ideas LLC identified

United Therapeutics

(

UTHR

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified United Therapeutics as such a stock due to the following factors:

  • UTHR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $96.1 million.
  • UTHR has traded 165,332 shares today.
  • UTHR is up 3% today.
  • UTHR was down 10.5% yesterday.

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More details on UTHR:

United Therapeutics Corporation, a biotechnology company, develops and commercializes products to address the unmet medical needs of patients with chronic and life-threatening diseases worldwide. UTHR has a PE ratio of 9. Currently there are 4 analysts that rate United Therapeutics a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for United Therapeutics has been 771,000 shares per day over the past 30 days. United has a market cap of $4.9 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.81 and a short float of 19.6% with 9.38 days to cover. Shares are down 30.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates United Therapeutics as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 6.8%. Since the same quarter one year prior, revenues rose by 16.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • UTHR's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.60, which clearly demonstrates the ability to cover short-term cash needs.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Biotechnology industry and the overall market, UNITED THERAPEUTICS CORP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • 40.26% is the gross profit margin for UNITED THERAPEUTICS CORP which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 25.84% trails the industry average.

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